Permex Petroleum Corporation Completes Private Placement, Issues Convertible Debenture Units

On November 1, 2024, Permex Petroleum Corporation (OTCMKTS:OILCF) successfully closed its private placement, as reported in the company’s recent 8-K filing with the Securities and Exchange Commission (SEC). During this transaction, the company issued an aggregate of 4,276.39 convertible debenture units to various accredited investors, including the CEO, in exchange for proceeds totaling $4,276,389.

Each convertible debenture unit, or “Unit,” comprised one 10% senior secured convertible debenture with a principal amount of US$1,000 and 523 common share purchase warrants. The debentures are set to mature on November 1, 2025, with interest payable on the maturity date at a rate of 10% per annum. The securities are convertible into common shares of the company at a conversion price of US$1.91.

The funds raised from this private placement, including $2,851,601 in cash and approximately $1,424,788 used to settle existing debentures and accrued interest, are projected to support Permex Petroleum’s drilling and development activities, potential acquisition endeavors, and general working capital needs. Notably, no finders’ fees were disbursed as part of this transaction.

An essential component of the private placement was the signing of a Registration Rights Agreement between Permex Petroleum and the debenture holders. Under this agreement, the company committed to filing a registration statement with the SEC covering the resale of shares issued upon conversion of the debentures and exercise of warrants within 120 days of the closing date.

The completion of this private placement was accompanied by the repayment of previous debentures amounting to $1.365 million along with interest payments. Additionally, holders of the previous debentures agreed to cancel associated share purchase warrants.

The Private Placement Notice issued on November 4, 2024, further highlighted the specifics of the transaction and the intended use of funds. The participants in the private placement, including notable figures like the CEO and other investors, were disclosed, along with their acquisition details and future intentions regarding the company’s securities.

Permex Petroleum Corporation remains focused on enhancing its operations within the oil and gas sector, particularly with assets situated in the Permian Basin of West Texas and the Delaware Sub-Basin of New Mexico. Through strategic financial maneuvers like the successful offering of convertible debenture units, the company aims to further its growth trajectory and execute its operational plans effectively.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Permex Petroleum’s 8K filing here.

Permex Petroleum Company Profile

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property, Pittcock South property, Windy Jones property, and Mary Bullard property located in Stonewall County.